1. At each particular date S&P had to make a default forecast (assign a rating), only those defaults were known (and could be part of S&P's development samples), that had occurred before that particular date;case S&P is regularly revising its rating methodology,2000
2. 14): financial institutions 19.5%, consumer/service sector 13.5%, aerospace/automotive/capital goods/metal 11%, insurance/real estate 10%, utilities 9%, leisure time/media 8%, health care/chemicals 6%, energy/natural resources 5.5%, telecommunications 4.5%, transportation 4.5%, high tech/computers/office equipment 4%, forest/building products/home builders 4%. 288 for the AR data see S&P (2004b, p. 11) 289 "There are no formulae for combining scores to arrive at a rating conclusion. Bear in mind that ratings represent an art as much as a science;Concerning rating composition by industry sectors differing information for 1980-2001 can be found at S&P,2000
3. Concerning rating composition by regions there are slightly differing data given in MOODY'S (2004c) for;The data is based on BASEL COMMITTEE,2000
4. 9) for median-enterprise sizes by regions and rating classes;CANTOR,2004
5. Measuring the Performance of Corporate Bond Ratings;R Cantor;Special Comment, Report #77916, Moody's Investor's Services,2003